Brazil has approved a phased increase in taxes on licensed gambling operators, with rates scheduled to reach 15% by 2028. President Luiz Inácio Lula da Silva signed Complementary Law No 224 last week, following approval by both the Senate and Chamber of Deputies in December.
The law raises the tax on gross gaming revenue—defined as total revenue minus prizes paid to players—from the current 12% to 13% in 2026. It will then rise to 14% in 2027 and reach 15% in 2028.
Gradual increase with added obligations
Complementary Law No 224 also specifies contributions to social security, beginning at 1% in 2026, then rising to 2% in 2027 and 3% in 2028. The legislation adds compliance requirements, including joint tax liability for entities that advertise illegal betting sites or process payments for unlicensed operators. This includes financial institutions and payment providers that facilitate transactions with unlicensed platforms.
Although the law’s provisions were signed into effect at the start of 2026, Brazil’s constitution requires a 90-day waiting period for new or increased taxes. Operators will thus have a short transition period before the 13% rate takes effect.
Political developments and rate adjustments
The 15% final rate is lower than earlier proposals in Congress. In early December, the Senate’s Economic Affairs Committee advanced PL 5,473/2025, which set an 18% rate by 2028. Opposition from lawmakers prompted further scrutiny, delaying passage before the government recess. The revised PLP 128/2025 ultimately became Complementary Law No 224, offering a slightly lower rate than initially considered.
Operators remain concerned about additional fiscal measures. Last month, the Senate plenary approved a 15% tax on player deposits to licensed platforms. Because the bill was amended, it must return to the Chamber of Deputies for further consideration before presidential approval. Revenue from the CIDE-Bets tax, aimed at funding the National Public Security Fund, is projected to reach around BRL30 billion ($5.5 billion) annually.
Industry concerns over illegal market growth
The Antifaction Bill also reinstates the RERCT Litígio Zero Bets mechanism, imposing a 15% retrospective tax on gambling activity between 2018 and 2024. Licensed operators handled R$27.7bn in the first nine months of 2025, while the government collected R$3.32bn (€506m) in federal taxes. However, the unlicensed market still accounts for roughly 55% of total activity, raising concerns about regulatory effectiveness.
The Brazilian Institute for Responsible Gaming warned that excessive taxation could strengthen illegal operators. “Measures that weaken the regulated environment only benefit those operating outside the law and make it harder to tackle the criminal networks that exploit the lack of oversight,” the institute stated. It added that supporting the formal market ensures “legal certainty, compliance with regulations, and a competitive and sustainable environment.”
Udo Seckelmann, head of gambling & crypto at law firm Bichara e Motta Advogados, cautioned that the CIDE-Bets levy could reduce channelisation to licensed platforms below 20%, further increasing risks of illegal market activity.
Source:
“Brazil president approves gradual tax rise on gambling operators”, igamingbusiness.com, January 2, 2026
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